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Market Value, R&D and Intellectual Property: An Empirical Analysis of Large Australian Firms
Author(s) -
Bosworth Derek,
Rogers Mark
Publication year - 2001
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/1475-4932.t01-1-00026
Subject(s) - intellectual property , value (mathematics) , economics , tobin's q , market value , property value , business , financial economics , monetary economics , accounting , finance , mathematics , statistics , law , political science , real estate
This paper considers the value of innovation to large Australian firms. Specifically, we investigate how R&D and intellectual property activity influences the market value of firms, using a Tobin’s q approach. R&D data are available for the period 1994–96 and data on patent, trade mark and design applications for 1996. The findings suggest that R&D and patent activity are positively and significantly associated with market value. The results also suggest that private returns to R&D in Australia are low by international standards.